ENTREPRENEURSHIP

Detailed explanation-1: -Lowering prices is one of the most common strategies that companies use to increase market share for a product. If their competitors also lower their prices, a price war begins. Price wars are most common in industries where there is both heavy competition and several comparable products.

Detailed explanation-2: -Economic hardships often force companies to lower prices to sell their products. Realistic prices are often associated with the quality of the product. Competitive pricing occurs when you try to meet or beat your nearest competitor’s prices.

Detailed explanation-3: -Which of the following statements is true of a flexible-pricing policy? A flexible-pricing policy often specifies a range in which the actual charged must fall.

Detailed explanation-4: -A common pricing mistake entrepreneurs make is lowering prices because they fail to recognize the: extra value, convenience, service, and quality they offer their customers.